BitGo Confirms Filing Lawsuit Against Galaxy Digital, Seeks $100M in Damages

BitGo confirmed earlier today that it had filed a lawsuit against the Mike Novogratz-spearheaded company seeking damages in excess of $100 million.

Galaxy Digital planned to acquire BitGo earlier this year but backed out of the deal recently.

• In a September 13 Twitter threadBitGo confirmed the previous rumors about the lawsuit, saying it was filed on September 12.
• The company said it wants “more than $100 million” in damages “arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo.”
• Crypto Potato reported in early April Galaxy Digital’s intentions to acquire the cryptocurrency custodian as the deal was supposed to take place until October 2022.
• However, the former terminated the agreement in August, claiming that BitGo had failed to deliver audited financial statements from 2021 that was in compliance with its requirements.
• BitGo’s statement from today cited by Brian Timmons, a partner with Quinn Emanuel (the law firm representing the custodian):

“Although BitGo does not believe that the complaint contains any confidential information, it was filed in Delaware Chancery Court under seal in an abundance of caution in the event Galaxy contends otherwise and wishes to redact some of the allegations before the complaint becomes public. Under the court’s rules, even if some information is redacted, the complaint should be accessible by the public shortly after 5 pm ET on Thursday.”